Once the Budget provides some tangible relief to civil aviation sector, chances are that some airlines would come forward to adopt certain airports as their own, establish their hubs, look at regional connectivity closely and help generate employment opportunities
The general feeling in the aviation sector is that the Union Budget to be presented by Finance Minister Arun Jaitley on 28th February, may provide them with some cheer, particularly on the reduction of taxes on the aviation turbine fuel (ATF). Many states levy value added tax (VAT) ranging from 4% to 30% and the industry hopes that this should be unified across the States to be not more than 3% or 4%.
Direct import of ATF is possible but the infrastructure needed to facilitate its transportation is actually dominated by the oil marketing companies (OMCs). If, as a sequel to the Budget, the Centre ensures that this infrastructure is made accessible or shareable with private airlines, which are willing to import ATF directly. This would not work to mutual advantage.
25/02/15 AK Ramdas/moneylife
To Read the News in full at Source, Click the Headline
The general feeling in the aviation sector is that the Union Budget to be presented by Finance Minister Arun Jaitley on 28th February, may provide them with some cheer, particularly on the reduction of taxes on the aviation turbine fuel (ATF). Many states levy value added tax (VAT) ranging from 4% to 30% and the industry hopes that this should be unified across the States to be not more than 3% or 4%.
Direct import of ATF is possible but the infrastructure needed to facilitate its transportation is actually dominated by the oil marketing companies (OMCs). If, as a sequel to the Budget, the Centre ensures that this infrastructure is made accessible or shareable with private airlines, which are willing to import ATF directly. This would not work to mutual advantage.
25/02/15 AK Ramdas/moneylife
